The University of Windsor Student Alliance will form a committee to investigate its investments.
The alliance passed a Boycott, Divest, and Sanction motion on Tuesday at its annual general meeting.
"The motion passed with an overwhelming number of votes for, accompanied with an open letter signed by a large number of societies and clubs," said a release.
The motion calls on the alliance to ensure it does not support or profit from companies that benefit from Israel's war in Gaza.
Estimates suggest more than 32,000 Palestinians have died since Israel started its military action in Gaza, following Hamas's attack on Israelies that killed 1,200 people on October 7.
The motion also calls on the university to divest from Israel and recognize Palestinian racism as a class of discrimination.
"Israel has incurred direct or collateral damage on 90 per cent of the schools in Gaza, with zero surviving universities," said the release. "A total of 94 university professors have been murdered by the Israeli Occupation Forces since October 7. This destruction and carnage is intentional, targeting Palestinian cultural and historical assets."
The Palestinian Support Group at the university was one of the first student movements in Canada to pass a motion in 2014. It was later overturned.